Product & Brand Strategies Essay Example

purchasing is done by usually males who are married and in their mid-forties. These purchasers, age ranging from 35 – 54, mostly purchase these Harley-Davidsons for recreational purposes rather than serious transportation facilities.

Approximately two-thirds of these customers in the US are purchasers who have graduated from high school and have completed at least one year of college studies, while 30% of them have a complete college degree. It is quite surprising but almost 12% of retail motorcycle sales pertaining to new Harley-Davidsons in the United States are made to female customers (Company Studies, 2006).

The Buell Motorcycle Company is a segment of the Harley-Davidson Motorcycle Company. These motorcycles made are called the Buells and have a separate target market which is not very different from the Harleys. Males with ages ranging from 25 – 55 are usually attracted to the Buells; mostly males at the age of 42 with a household income of around $94,800. Unlike the Harleys, only 3% of the US retail sales of the new Buell XB are made to females.

The average US customer who purchases a new Buell is at the age of 41, with almost half being females. 50% of the Buell purchasers have never possessed a motorcycle earlier and 95% of them never owned a Buell in the past (Company Studies, 2006). Product Categories The Harley-Davidson Motorcycle Company manufactures a total of five motorcycle families with their engines ranging from 883cc’s to 1800cc’s – Touring, Dyna, VRSC, Sportster and Softail.

Touring, Dyna, Softail and Sportster are powered by an air-cooler twin-cylinder engine and has a V configuration of 45 degrees. While VRSC on

the other hand is powered by a similar twin-cylinder engine, only it is liquid-cooled and has a V configuration of 60 degrees. The Buell Motorcycle company has ten models currently, with 9 from the Buell XB family, and the other from the Blast. All these products are categorized by performance, standard, custom and touring.

It is common knowledge that different types of products cater to different types of customer markets. This product-market grid helps us in understanding the relation between the two variables for this company. Performance concentrates on acceleration and handling; standard on simplicity and cost; custom on the tailored needs and style; and touring on the comfort of traveling long distances (H. O. G Stock Analysis, 2007). The intersection of these needs and the customers is represented on the product-market grid. Strategy

Market is developed by Harley-Davidson Motorcycle Company chiefly through the basic marketing techniques – customer events; advertising through national TV, print, direct mailing, radio, and of course the internet; sponsorship of racing events, shows, rallies; and lastly dealer promotions. These are mostly implemented through the company’s cooperative programs with its independent dealers. It develops a product market by concentrating on customer feedback and by keeping a track of how many times a warranty is used due to the arousal of a problem; and thus, producing enhanced products.

Another major tool that the company uses is research and development; a thorough market research regarding innovation and customer need is carried out along with a research based on the implementation of new products and manufacturing methodology (Hogan, 2006). Competitive Advantage The company believes that its endorsement of the motorcycle lifestyle

based on events, rallies and Harley Owner Groups and the financing of all these through Harley-Davidson Financial Services as a promotional stunt gives Harley-Davidson a competitive advantage over the other companies (Barrett, 2007).

The ability to provide wholesale and retail financial services package also gives them an edge over the others – the others compete for quality and price, while Harley-Davidson also competes for services, expediency, brand loyalty, dealer relations and of course industry experience. With so much more being dealt with and provided to the customers; Harley-Davidson definitely beats the other companies.